Investor Presentation, Q1 2013
Investor Presentation
Q1 2013
London: AIM : OTC
Frankfurt: DFY
www.ortacresources.com
Šturec Deposit 1.32 Moz JORC Compliant Gold
Resource
Approval
Working towards Regulatory
approval
Fully Funded To completion of Bankable
Feasibility Stage
Investor Presentation, Q1 2013
Regulatory Notice
The information contained in these slides and this presentation is being supplied to you by Ortac
Resources Ltd. (“the Company”) solely for your information and may not be reproduced or redistributed
in whole or in part to any other person. Recipients of these slides and/or persons attending this
presentation who are considering a purchase of ordinary shares in the Company are reminded that any
such purchase must be made solely on the basis of the information that the Company has officially
released into the public domain. Whilst all reasonable care has been taken to ensure that the facts stated
in these slides and this presentation are accurate and the forecasts, opinions and expectations contained
in these slides and this presentation are fair and reasonable, the information contained in this document
has not been independently verified and accordingly no representation or warranty, express or implied, is
made as to the accuracy, fairness or completeness of the information or opinions contained in these slides
or this presentation and no reliance should be placed on the accuracy, fairness or completeness of the
information contained in these slides and this presentation.
None of the Company, its shareholders or any of their respective advisers, parents or subsidiaries nor any
of their respective directors, officers or employees or agents (including those of their parents or
subsidiaries) accepts any liability or responsibility for any loss howsoever arising, directly or indirectly,
from any use of these slides or this presentation or their contents. These slides and this presentation do
not purport to contain all information that a recipient may require and is subject to updating, revision
and amendment in any way without notice or liability to any party.
These slides and this presentation do not constitute a recommendation regarding the shares of the
Company. Recipients of these slides and this presentation should conduct their own investigation,
evaluation and analysis of the business, data and property described therein. If you are in any doubt
about the information contained in these slides or this presentation, you should contact a person
authorised by the Financial Services Authority who specialises in advising on securities of the kind
described in these slides and presentation. Certain statements within this presentation constitute
forward looking statements. Such forward looking statements involve risks and other factors which may
cause the actual results, achievements or performance expressed or implied by such forward looking
statements. Such risks and other factors include, but are not limited to, general economic and business
conditions, changes in government regulations, currency fluctuations, the gold price, the Group’s ability
to recover its reserves or develop new reserves, competition, changes in development plans and other
risks.
There can be no assurance that the results and events contemplated by the forward looking statements
contained in this presentation will, in fact, occur. These forward-looking statements are correct or
represent honestly held views only as at the date of delivery of this presentation. The Company will not
undertake any obligation to release publicly any revisions to these forward looking statements to reflect
events, circumstances and unanticipated events occurring after the date of this presentation except as
required by law or by regulatory authority. By accepting these slides and/or attending this presentation,
you agree to be bound by the provisions and the limitations set out in them or imposed by them and to
keep permanently confidential the information contained in these slides or this presentation or made
available in connection with further enquiries to the extent such information is not made publicly
available (otherwise through a breach by you of this provision). Some of the statements are the opinions
of the Directors.
This document has not been approved by a person authorized under the Financial Services and Markets
Act 2000 (“FSMA‟) for the purposes of section 21 FSMA. In the United Kingdom, this presentation is
exempt from the general restriction in section 21 FSMA on the communication of invitations or
inducements to engage in investment activity pursuant to the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Financial Promotion Order") on the grounds that it is directed
only at the following, being persons who the Company reasonably believes to be: (a) persons having
professional experience relating to investments (being "Investment Professionals" within the meaning of
articles 19(5) of the Financial Promotion Order); (b) persons who fall within article 49 of the Financial
Promotion Order (high net worth companies, unincorporated associations or partnerships or the trustees
of high value trusts), or (c) other persons who have professional experience in matters relating to
investments and to whom these slides and this presentation may otherwise be lawfully communicated
(all such persons together being referred to as "Relevant Persons"). By attending this presentation, you
represent and warrant that you are a Relevant Person.
Any person who is not a Relevant Person should not rely upon or act upon these slides or this
presentation. The distribution of these slides in other jurisdictions may be restricted by law and persons
into whose possession these slides may come should inform themselves about, and observe, any such
restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of any
such other jurisdiction. The slides are not for distribution outside the United Kingdom and, in particular,
the slides or any copy of them should not be distributed, published, reproduced or otherwise made
available in whole or in part by recipients to any other person, directly or indirectly, by any means
(including electronic transmission) either to persons with addresses in Canada, Australia, Japan, the
Republic of South Africa and the Republic of Ireland or to persons with an address in the United States,
its territories or possessions or to any citizens, nationals or residents thereof, or to any corporation,
partnership or other entity created or organised under the laws thereof. Any such distributions could
result in a violation of Canadian, Australian, Japanese, South African, Irish or United States law.
These slides and this presentation do not constitute, or form part of, a prospectus relating to the
Company nor do they constitute or contain any invitation or offer to any person to underwrite, subscribe
for, otherwise acquire, or dispose of any shares in the Company or advise persons to do so in any
jurisdiction, nor shall they, or any part of them, form the basis of or be relied on in any connection with
any contract or commitment whatsoever.
2
Investor Presentation, Q1 2013
Overview
3
AIM-listed Ortac Resources is actively
developing the Šturec Deposit in Slovakia, which
has a JORC Code compliant resource of 1.32
million ounces of gold equivalent.
Overview. Exploration and development company focussed on
natural resource projects.
Assets. The Šturec Deposit is located in a proven gold-bearing
mineral district. Ortac is well advanced on the critical path of
project delivery.
Resources. 1.32 million ounces gold equivalent (0.4g/t Au Eq.
cut-off), with over 1 Moz in the Measured and Indicated
categories.
Status. Positive results from SRK Scoping Study to advance
towards completion of Šturec PFS by Q1 2013.
Additional Value. 8 exploration licences in Slovakia totalling
200 sq km.
Strategy
Create shareholder value through responsible
development.
Utilise Ortac’s extensive in-house knowledge and
development expertise to build value adding results.
Focus on sustainable solutions that mobilise the
economic and human potential of resource assets and
deliver robust investment returns.
Investor Presentation, Q1 2013
Corporate Information
4
Share Price* 0.51p
Market AIM
Ticker OTC
Market Capitalisation £11.59 million
Ordinary Shares in
Issue 2,315,679,000
Options & Warrants 246 million
Average Daily
Volume (1m) 10.2 million
Broker Seymour Pierce
Cash & Investments £5.6 million
EV (US$) $9.36 million
EV/$US resource oz
Au eq. $7/oz
Shareholders
Henderson Global Investors 12.05%
Directors 10%
*Share Price as at 06.02.13
Investor Presentation, Q1 2013
Board of Directors & Management Team
5
An experienced team with a strong track
record of delivery in the natural resources
and corporate finance sectors.
Board
Anthony Balme
Non Executive
Chairman
Extensive Experience in Natural Resources, Commerce and Finance.
Chairman of Carter Capital Ltd, AMC Ltd, Lymington Underwriting and
Forum Uranium Corp; former director of Vatukoula Gold Mines plc and Far
North Platinum.
Vassilios Carellas
Chief Executive
Officer
Geologist with extensive experience in mining and exploration in Central
Asia. Past Managing Director and co-founder of AIM-listed Kryso Resources
plc. Past Vice President Mining, General Manager and Chief Geologist for
two TSX-listed miners operating producing mines.
Charles Wood
Executive Director
Corporate
15 years in corporate positions in resources, banking and agriculture.
Extensive experience in independent experts’ reports, due diligence, capital
raisings and m&as. Past General Manager of AIM-listed Equatorial Palm Oil
plc and Founding Director of Ragnar Capital, an independent broker.
David Paxton
Non-executive
Director
Professional engineer with 35 years’ experience in the mining sector. 25
years as a mining analyst at a number of Canadian & UK stockbrokers, most
recently Religare Hichens. CEO of Vatukoula Gold Mines plc, India
Minerals plc, Adit Investments Ltd, Sahara Mines Ltd, Far North Platinum
Ltd, and Mining & Dining Club Ltd.
Paul Heber
Non-executive
Director
Investment manager and stockbroker with over 20 years’
experience. Director of bespoke boutique Savoy Investment
Management. FSA regulated in London and FSB regulated in
Johannesburg. Director of AIM-listed Cambria Africa Ltd and
Shanta Gold plc.
Senior Management
Hugo Green
Chief Financial
Officer
Based full-time in OTC Bratislava office. Extensive
experience in Central Europe, having worked for 15 years in
the region with major companies. Past positions at Deloitte
and PWC.
Owen Mihalop
Technical Director
17 years’ international mining experience. Particular
experience in feasibility studies. Past positions with Navan
Resources plc, Homestake Mining Corporation and
Wardell Armstrong International.
Viktor Pomichal
Managing Director
Slovakia
Based full-time in OTC Bratislava office. Past positions at
UBS Bank, covering worldwide transactions. Past Director
& Partner at Private & Syndicated Investments. Former
Managing Director of Finance & Partner at Slovak Forestry
Company.
Investor Presentation, Q1 2013
Šturec Deposit
6
Considerable progress has been made at the
Šturec Deposit. Ortac is past the exploration
stage and is engaged in active project
development.
Proven. Recently State-owned Rudne Bane operated at
Kremnica (Šturec) from 1987-1992 producing 50,028 tons of
ore averaging 1.54g/t Au from a small pit.
Historically an estimated 1.5 million ounces of gold have been
recovered from the Kremnica area with an estimated 4 million
ounces mined.
Further core/RC drilling by Argosy Mining Corporation and
Tournigan Gold Corporation (120 holes, 25,000m) prior to
Ortac acquiring Šturec in 2010.
Quality. SRK’s Scoping Study (commissioned by Ortac in Jan
2012) demonstrated a post-tax NPV of US$309m and IRR of
36% at a US$1,585 oz eq. gold price.
Resource category
Tonnes (kt)
Au (g/t)
Ag (g/t)
Au Eq. (g/t)
Contained metal
(Koz Au Eq)
Measured &
Indicated
15,400 1.75 14.85 2.04 1,010
Inferred 9,700 0.89 5.08 0.99 310
Total 25,100 1.42 11.07 1.64 1,320
Open Pit Resource
Classified in accordance with the JORC Code (2004) Snowden,
May 2012 – 0.4 g/t Au Eq. COG
Investor Presentation, Q1 2013
Šturec Deposit
7
Developing an advanced stage asset into a
profitable operation in a historic gold and silver
producing region.
Historic Work. The open pit was assessed in 2007 as a
conventional truck and shovel operation, processing 2.1Mtpa
with ore mining of up to 3Mtpa.
Mineralisation. Continuous mineralisation for 1,200m along
strike. The deposit is up to 120m wide and extends to a known
depth of at least 300m and is still open in all directions.
Šturec. Estimated to contain 15.4Mt of ore at a grade of
1.75g/t Au and 14.9g/t Ag in the Measured and Indicated
categories and 9.7Mt at a grade of 0.89g/t Au and 5.1g/t Ag
in the Inferred category (at a 0.4 g/t Au Eq. cut-off grade).
Scenarios. The 2012 Scoping Study (SRK Consulting) for
Šturec identifies three open pit scenarios and an underground
option.
Šturec : Geological Context
Investor Presentation, Q1 2013
Scenarios
8
A world-class deposit, benefitting from strong
geological knowledge and proven metallurgy.
Deposit. Amenable to surface mining with low stripping
(waste) ratios.
Scoping Study. Identifies three scenarios all utilising latest
surface mining techniques.
Base Case
1.5 mtpa surface mining
Gold grade: 1.66 g/t
Strip ratio: 2.25
Mine life: 11 years
Capital cost: US$149m
Scenario 2
0.75 mtpa surface mining
Gold grade: 1.85 g/t
Strip ratio: 1.06
Mine life: 11 years
Capital cost: US$83m
Scenario 3
2.0 mtpa surface mining
Gold grade: 1.46 g/t
Strip ratio: 1.75
Mine life: 11 years
Capital cost: US$155m
Source: SRK Scoping Study, January 2012
Above: Open pit mine model, Base Case
Picture: Šturec Crest looking east
Investor Presentation, Q1 2013
Scoping Study
SRK Consulting’s Scoping Study confirms the
economic viability of the Šturec Deposit.
2012 Scoping Study Highlights*
Average Annual Gold Production (Au oz eq.) 86,000
Life of Mine Net Revenue (US$m) 1,125
Life of Mine Net Present Value (post tax NPV US$ 8%) 153
Pre Tax Internal Rate of Return (IRR %) 24
Payback (Years) 4
Open Pit Capital Costs (US$) 155
Total Life of Mine Cash Costs (US$/oz) 495
Initial Mine Life 11
Gold US$1,188/oz US$1,387oz US$1,586/oz US$1,784/oz
Post Tax NPV (US$m) 153 232 309 392
Payback (yrs) 4 3 3 2
IRR (%) 24 30.5 36.5 46.9
Project Sensitivity Model
* Assumes ‘scenario 3’ and base case price of US$1,188 Au Eq.
SRK Conclusions
The project “appears viable and the open pit scenarios
examined are economic at gold prices below the
current spot price”.
“The results warrant progression to the next level of
technical study.”
Source: SRK
Scoping Study,
January 2012
9
Investor Presentation, Q1 2013
Development Timeline
The Šturec Deposit is well advanced
in the critical path of project delivery.
HIGH RISK MEDIUM RISK
Proven & probable reserves: c. 0.8 –
0.9Moz
Integrated mining and process plant
design: compliant with EU BAT
Externally costed CAPEX and OPEX
scenarios: +/- 25%
Lodgement of Preliminary
Environmental Report: with
Government
Commencement of full EIA and BFS
PFS Targets
10
Investor Presentation, Q1 2013
Current Principal Risk and Uncertainty
Ortac’s principal risks are neither technical nor
infrastructural. We have a defined resource that
is economic and is amenable to modern
extraction and processing.
Risk Mitigation / Comment Potential
Impact
Further Information Additional
• Mining Licence,
Environmental
Permits, required
to progress Šturec
• Regional and Local
stakeholder
blessing required
• Implemented a robust local
stakeholder engagement strategy
• In direct contact to secure
regulatory approval from:
• The Supreme Mine
Office (Hlavný banský
úrad)
• Ministry of Economy of
the SR (MH SR)
• Ministry of the
Environment of the SR
(MŽP SR)
High • Šturec Resource is already
designated within a mining
licence area that has been in
place for over 40 years
• Mining precedent already set
• State-owned Rudne Bane,
operated at Kremnica from 1987
-1992
• Extensive adit and
cross-cut development
undertaken within the
Šturec zone
• Historically producing
from surface and
underground
11
Investor Presentation, Q1 2013
Engagement
12
Ortac’s corporate social responsibility
programme involves real local engagement.
Gold panning, part of our open day events programme.
In partnership with the local community, Ortac is
exploring sustainable development solutions.
Investor Presentation, Q1 2013
Lutila Exploration License
Licence. Comprises 64,83 Sq.km area immediately to the
south of the Kremnica Au/Ag deposit in central Slovakia
Licence has recently been renewed and is extendable for up to 10
years
Perfectly preserved palaeogeothermal field. Preserved all the way
to the palaeolandsurface, where proximal and distal sinters and
associated hydrothermal feeder zones are abundant
Soil geochemistry. Shows focused anomalism in the gold-
pathfinder elements typically associated with epithermal gold,
namely As, Sb, Hg, Tl
Geophysics. Ground based geophysical survey completed in 2011
– targets generated
Scout drilling. Intersected 33m @ 0.86g/t in the strongly
brecciated margin of a rhyolite dyke
13
Kremnica
64.8 km 2
2
Lutila Exploration Licence
Kremnica Mining Licence
0 5 km
11.8 km
Mining and Exploration Licence Areas
N
Investor Presentation, Q1 2013
Eastern Slovakian Exploration Licenses
Additional exploration licences in
Slovakia add value to Ortac’s
portfolio.
Zlata Bana
• 1,200m drill programme complete – results include 12.5m and 6.35m at 2.40
and 1.98g/t Au.
• Snowden is producing an updated Mineral Resource estimate.
• 1970/80s exploration programme uncovered grades of 48.5 g/t Au and 1,220
g/t Ag - historical non-JORC resource in excess of 0.5 million oz Au.
Cejkov
• Exploration activities completed in November 2011, including 4 diamond drill
holes (av. 225m) and ground based geophysics (2.5km)
Smolnik
• Adjacent to Global Minerals Strieborna Silver Vein Deposit (3.425Mt @ 208
g/t Ag, 1% Cu, 0.7% Sb & 32.6% Fe)
• Historical underground mining activities focussed on gold bearing antimony
vein style mesothermal mineralisation (1.8% to 15% Sb; 0.25 g/t to 20 g/t Au)
Porobsky Potok and Ruska Bystra
• Ground geophysics (mag and IP) combined with soil geochemical grids and
rock geochemical sampling defined two large porphyry style targets.
Bysta Skaros
• Early stage exploration targeting high-level, low sulphidation precious
metal mineralisation – similar to Šturec
• 49,000m of geophysical-geochemical profiles surveyed on 13 profiles
14
Investor Presentation, Q1 2013
Why Slovakia needs Šturec
15
Resource Sector
Slovakia
Extractive industries can play a vital role in the Slovak
economy, with it currently only contributing US$400 million
to GDP (approx. 0.5%) and employing around 6,000
people.
EU policy-makers want the EU
natural resource sector to
contribute to economic
recovery.
Gold Mine Silver Mine (Exploration) Coal & Lignite Mining Industrial Minerals
The EU accounts for no more than 1% of the
world gold mining production.
As a result, the EU imports more than 90%
of the gold needed to satisfy its internal
demand, including from third world
countries that apply lower corporate,
health, social and environmental standards.
Slovenská Banská operates the Rozália gold mine, at its height in the mid 1990s they employed 300
people.
Ortac would employ a similar number and make a significant contribution (€ 750m life of mine
estimate) to regional and national Slovak GDP.
Investor Presentation, Q1 2013
Vision
1. Establish and maintain open dialogue with all interested
parties and stakeholders.
2. Mobilise what is great in Europe: technology, innovation
and environmental protection.
3. Respect all views: understand the positive and negative
before any action is taken.
4. Comply with Slovak and EU laws.
Ortac intends to develop Šturec in a way
that respects and conserves the region’s
heritage and nature by following four
core development principals.
Purpose: Seek to establish partnerships
that go beyond responsible mining
Result: Partnering with local leaders
across fields of tourism, industry & nature
conservation: enabling the full potential of
the Šturec Deposit & surrounds to be
realised
16
Investor Presentation, Q1 2013
Investment Case
Pricing Scenario (Long Term Gold Price)
US$m £M Price Per Share
Share Price forecast
US$1,000 / oz)
101.3 62.9 2.7
Scoping Study Base Case
US$1,200 / oz)
140.3 87.1 3.8
Spot Price
US$1,560 / oz)
279.5 173.6 7.3
This is a marketing communication. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is
not subject to any prohibition on dealing ahead of the dissemination of investment research.
Good news + good news = Buy
There has been positive news for Ortac on two fronts in recent days. A
24% increase in the resource estimate at the company’s flagship Sturec
gold project has been followed by a £20m equity funding agreement with
a subsidiary of Henderson Global Investors, the company’s largest
shareholder. In our view both these developments help to further derisk
Ortac’s offering as it pushes on with its evaluation of Sturec. This in turn
makes the recent downward trend in the share price difficult to
comprehend. We maintain our 4p target price.
Sturec resource upgrade
Following the infill drilling programme last year Ortac's geological consultant,
Snowden has updated its resource estimate for the project based on a more realistic
overall cut off grade of 0.26g/ t gold (vs. 0.75g/ t used in the 2011 estimate). This has
led to a 24% increase in the global resource to 1.36Moz gold equivalent (including
1.18Moz gold) with the proportion of the resource in the Measured and Indicated
categories up by 75% to over 1.01Moz, or 74% of the total. Most importantly, at 25Mt
the new estimate provides further comfort in the company’s preferred open pit
scenario from the January scoping study which was based on a 20Mt resource
envelope and throughput of 2Mt ore/ year producing 86koz/ year gold equivalent.
Financing agreement
Ortac has secured a £20m equity finance facility with Darwin Strategic Limited, an
investment vehicle majority owned by a subsidiary of Henderson Global Investors,
Ortac’s largest shareholder (11.06%). The company can draw down in full or in part on
the facility at any time over the next three years and the subscription price will be
based on a 5% discount to a reference price determined during the 15 trading days
following the delivery of a subscription notice from Ortac to Darwin. The agreement is
accompanied by an offering of 20m warrants exercisable at 1.25p up to 11 May 2015.
With the capital expenditure for the 2Mt ore/ year operation at Sturec estimated in the
Scoping Study at US$155m (£97m), the Darwin financing option could represent the
majority of the required equity component (£34m). Given current prevailing market
conditions this agreement could prove very useful to Ortac in our view.
3,4,5 Please see regulatory disclosure notes at the end of this document
F Forecast change
A draft of this research has been shown to the company following which minor factual amendments have been made.
15 May 12 | Company Note | Mining
Ortac Resources( AIM: OTC)3,4,5,F
BUY
Share price 1p
Target price 4p
480% Upside
Market cap (£m) 16.0
Net cash (£m) 7.8
Enterprise value^ (£m) 8.2
No. of shares (m) 2,315.7
Free float (%) 93.0
Average daily vol ('000, -3m) 13,881
Dividend yield (%) 0.0
PER at Target price (Y1) (133.4)
Sector PER 10.8
Price/ book 1.2
12 month high/ low (p) 1/ 1
(%) 1m 3m 12m
Absolute -10.4 -17.9 -50.7
FTA relative -7.5 -12.1 -45.3
Price & price relative (-2yr)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
May Aug Nov Feb May Aug Nov Feb May
Price Relat ive
Source: Datastream
Share price as at close: 14 May 12
Next news
On going exploration/ appraisal results
Business
Precious metal exploration & development in
Central Europe
www.ortacresources.com
Asa Bridle
Research Analyst
+44 (0) 20 7107 8034
Matthew McDonald
Research Analyst
+44 (0) 20 7107 8070
Year end
March
Revenue
($m)
EBIT*
($m)
PBT*
($m)
Tax
(%)
Adj. EPS*
(c)
PER
(x)
EV/ EBIT*
(x)
Div yield
(%)
2010A 0.0 0.1 0.1 0.0 0.0 59.9 121.5 0.0
2011A 0.0 (2.1) (1.7) 0.0 (0.1) n/ a n/ a 0.0
2012E 0.0 (1.2) (1.1) 0.0 (0.0) n/ a n/ a 0.0
2013E 0.0 (1.2) (1.2) 0.0 (0.1) n/ a n/ a 0.0
2014E 0.0 (1.2) (1.2) 0.0 (0.1) n/ a n/ a 0.0
* excludes exceptional items and amortisation of acquired intangibles.
^ EV calculation adjusted for core cash, investments etc.
Source: Seymour Pierce Ltd
Valuation Analysis
Source: Seymour Pierce Equity Research – 18 May 2012
We maintain our 4p/share target
price for now, some 6.5x the current
share price.
17
Investor Presentation, Q1 2013
Investment Case
Asset Discount Rate
NAV Target (£m)
NAV Factor
NAV Target (£m)
Target SP (p)
Šturec 10% 135.7 0.5 67.8 2.9
Cash 7.2 1.0 7.2 0.3
Total 142.9 75.0 3.2
Valuation Analysis
The Gold Sector — August 2012
More Golden Opportunities 16 August 2012
The Gold Sector — August 2012 16 August 2012 13
Base Case Analysis
Source: RFC Ambrian
Bullish
Excluding the companies that had the largest percentage return from the base case, we have found that the best return in the bullish case scenario came from Vatukoula. Vatukoula is a high-cost underground gold producer that has had a difficult 18 months as production has decreased and cash costs have increased to the point where costs are currently higher than the gold price as the company has been focusing on an extensive mine development programme.
Therefore, it is not surprising that a company that is at the top of the cost curve is also most likely to be the main benefactor from lower costs and higher gold prices (in relative terms). Assuming an improved gold price and a lower cost scenario, we can assume a premium of nearly 300% return on Vatukoula’s current market valuation.
Bullish Scenario
Source: RFC Ambrian
-50% 0% 50% 100% 150% 200% 250% 300%
Vatukoula
Ortac
Olympus Pacific
Mandalay
Goldone
Edgewater
Cluff
Centamin
Avocet
Aureus
Archipelago
Anglo-Asian
Ampella
0% 100% 200% 300% 400% 500% 600%
Vatukoula
Ortac
Olympus Pacific
Mandalay
Goldone
Edgewater
Cluff
Centamin
Avocet
Aureus
Archipelago
Anglo-Asian
Ampella
High-cost producers are better leveraged to our bullish scenario
In a scenario where gold is priced at
US$1,400 /oz Ortac offers a 300%
upside on an NPV basis to a 0.5p share
price.
Source: RCF Ambrian, Gold Book, September 2012
18
Investor Presentation, Q1 2013
Investment Case
19
The Gold Sector — August 2012
More Golden Opportunities 16 August 2012
Source
The G
old
Secto
r — A
ugust 2
012
16 A
ugust 2
012
17
AIM/LSE — Explorers & Developers Peer Group Relative Valuations — EV/Resources (U$/oz attributable gold contained)
Source: Company data
0
1
2
3
4
5
6
0
10
20
30
40
50
60
70
80
90
100
Re
sou
rce
s co
nta
ine
d M
oz
To
tal E
V/
Re
sso
urc
es
(USD
/ o
z)
EV/Resource (USD /oz) Resources contained (oz)
Developers Explorers
*Gold Equivalent ounces calculated at an Ag:Au ratio 57:1
Ortac is a development stage company
trading at a significant discount to its
peers.
Investor Presentation, Q1 2013
Ortac in Numbers
100% of a 1.32 million ounce gold equivalent project in Central Europe
1.0Moz+ in Measured and Indicated categories
US$309 million (post tax) NPV revealed in Scoping study
~$1.5 billion life of mine revenue
£5.6 million in cash and investments – Šturec fully funded to completion of BFS
12.05% held by Henderson Global Investors demonstrates strong institutional support
20
Investor Presentation, Q1 2013
Corporate Directory
21
Charlie Wood
Executive Director Corporate
Ortac Resources Ltd
T: +44 (0) 20 7389 9050
Stewart Dickson
Seymour Pierce
T: +44 (0) 20 7107 8072
Vassilios Carellas
Chief Executive Officer
Ortac Resources Ltd
T: +44 (0) 20 7389 9050
Lottie Brocklehurst
St Brides Media & Finance
T: +44 (0) 20 7236 1177
Investor Presentation, Q1 2013
Gold Market
22
Since January 2006, the price of gold has consistently traded above Šturec’s
projected cash cost per ounce, helping to lower our economic risk profile.
Šturec Deposit:
cash cost
per ounce is US$495
Investor Presentation, Q1 2013
Gold Market
23
...and a bull market in in gold equities...
3 Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012
We are confident that the junior
gold sector will be the first to feel
the impact of a return to the
market by investors interested in
early stage pre-production phase
investment opportunities.
In the 1970s, gold equities closely tracked the gold
price.
Investor Presentation, Q1 2013
Gold Market
24
...but not this time.
4 Pierre Lassonde | "It was the best of times, it was the worst of times" | 10 September, 2012
It is clear that gold
equities have been over-
sold by the market.
Top Related